3 ms·

Nope. Primarily, people moving into the new housing lower cost pressure on lower tier housing. And pretty quickly, the highest tier is saturated and lower tier

• pixelatedindex 4y ago
  > And pretty quickly, the highest tier is saturated and lower tier housing is built. That’s definitely not what happens. Highest tier is saturated, developers say that “the market only wants highest tier housing”, and so more of the same gets built. > Or higher tier housing is overbuilt and drives down costs of all tiers. The opposite is what’s happening - the highest tier gets more and more expensive, and the lowest tier goes up too.
  • pitaj 4y ago
    > That’s definitely not what happens. Highest tier is saturated, developers say that “the market only wants highest tier housing”, and so more of the same gets built. If it's actually saturated, them prices will begin to drop. > The opposite is what’s happening - the highest tier gets more and more expensive, and the lowest tier goes up too. Because it's not actually overbuilt - they're still just trying to catch up. Most metro areas are still in a state of housing shortage.
• tomjakubowski 4y ago
  It could just be where I've chosen to live, but I have never seen a new "lower tier" apartment building go up. It's been "luxury" apartments (though actually built fairly cheaply, just expensive to rent…) 100% of the time.
  • pitaj 4y ago
    It's not that surprising. The housing market is in a state of shortage in pretty much every major metro area.